Today's Closing Update (June 17, 2009)

4:14 PM, Jun 17, 2009 --

• NYSE down 22.22 (-0.4%) to 5,864.54.
• DJIA down 6.7 (-0.1%) to 8,498.
• S&P 500 down 1.3 (-0.1%) to 910.71.
• Nasdaq up 11.9 (0.7%) to 1,808.

GLOBAL SENTIMENT

• Hang Seng down 0.45%
• Nikkei up 0.90%
• FTSE down 1.37%

UPSIDE MOVERS

(+) SVNT seeing continued upside advance after evening announcement that FDA panel recommends marketing approval for Krystexxa.

(+) AGEN enters phase III trial of GSK's malaria vaccine.

(+) CYTR says Tamibarotene demonstrates statistically significant anti-tumor activity in animal trial for multiple myeloma.

(+) TXN gets analyst upgrade.

(+) NFLX gets upgrade.

(+) SMG hikes earnings guidance.

DOWNSIDE MOVERS

(-) FDX reports drop in adjusted profit, guides below Street and withholds full-year view.

(-) STSI drew continued sharp downside reaction to patent ruling in favor of RJ Reynolds.

(-) CRGN turned lower, said earlier it is expanding a breast cancer trial.

(-) IBM to invest $100 mln in mobile research.

(-) CTIC detailed exchange offer results.

(-) ETFC announced debt swap.

(-) BZH gets S&P credit downgrade.

MARKET DIRECTION

Tech issues helped the broader stock market stem deeper losses Wednesday after a Texas Instruments (TXN) upgrade and a turn higher for Adobe (ADBE) following its results out late Tuesday. The major averages clawed into positive territory Wednesday afternoon but by the final bell, only the tech-heavy Nasdaq was still in the positive. Declines for financial issues limited Wall Street gains, after S&P lowered several of the sector's credit ratings and as the Obama administration detailed its plans for a regulatory overhaul.

U.S. stocks were mixed earlier in the session as FedEx (FDX) results and outlook overshadowed a tame inflation report.

U.S. consumer prices increased a seasonally adjusted 0.1% in May, posting the first increase in three months. The core CPI - which excludes often-volatile food and energy prices -- also rose a seasonally adjusted 0.1% in May. The reading's tamer than economists' expectations, giving stocks some underlying support.

FedEx disappointed the market with its results and outlook, and it is making investors skittish about the economy.

FDX reports Q4 ex-items earnings of $0.64 vs adjusted earnings of $1.45 a year earlier and topping the Thomson Reuters mean analyst estimate for $0.51. FDX lost $2.82 per share with items. Revenue of $7.85 bilion is down 20%. The Street expected $8.32 billion.

Q1 EPS guidance is $0.30 to $0.45 vs $1.23 a year earlier and below Street forecasts for $0.68.

The company says it does not have enough visibility to give a full-year outlook.

Also helping the tech space, Adobe (ADBE) recovered evening and early-Wednesday declines, after issuing disappointing results last night. The company said Q2 non-GAAP EPS were $0.35 vs $0.50 a year earlier and in line with the Thomson Reuters mean analyst estimate. Revenue of $704.7 million compares to $886.9 million a year earlier. The Street looked for $694 million.

Oil futures gained $0.56 to end at $71.03 a barrel on the New York Mercantile Exchange. Earlier, the contract hit an intraday low of $69.00 a barrel on Globex after the government reported a bigger-than-expected drop in crude stocks and a much larger-than-expected rise in gasoline supplies. In post-hours electronic trading, the contract is down $0.02 at $71.01 a barrel.

Comments

[Sovestor:]

Markets are unpredictable in the short-term but not in the long-term.

Jun 18 04:05 AM